Infineon bid to cut losses

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Infineon, the German semi-conductors giant, intends to take
further measures to help turn around three loss-making units on top
of the recently announced plant closure and job cuts, the group's
chairman Wolfgang Ziebart said on Tuesday.

Among the possible solutions being considered for the activities
were a sale or restructuring and so far a decision had been made
regarding the fate of two thirds of the activities, Ziebart said,
without specifying further.

The chairman, in charge of the semi-conductors since September,
has embarked on a massive shake-up of its poor performing
activities.

Last week, Ifineon said it would shut down a factory in
Munich-Perlach by 2007.

Of the 800 employees affected, fewer than a hundred had a chance
to be re-employed with the Infineon group, Ziebert said.

Infineon had set aside provisions to cover the cost of the
closure, the chairman added, without revealing exactly how
much.